Investing.com – The European Central Bank (ECB) this week interestwill announce its decision. Expectations are that the ECB will cut interest rates again.
This week, the ECB will The Fed’sIt is expected to make a second rate cut before next week’s rate cut attack. After cutting rates in June, the ECB decided to keep rates steady at its next meeting. In their latest statements, ECB officials signaled that they would cut rates this month. Market participants expect at least one more rate cut from the ECB in 2024.
Expectations of interest rate cut from ECB
The Bank of Canada, among developed country central banks, on September 4 discountAfter leaving, the second breakthrough is expected to come from the ECB. The expectation is that the ECB will reduce the interest rate to 3.65%.
This decision was made by the Fed on September 18 interestThe decision stands as a critical one. As data began to come in that inflation was being controlled in global markets, countries began to find a wider area to make attacks to support economic growth. Thus, a period is beginning in which developed countries are beginning to abandon tight monetary policy with new steps.
CPI data to be watched this week in the US
In addition, on Wednesday this week in the USA CPIdata will be monitored. The fact that this information also reflects the continuing downward trend in consumer prices may provide assurance to Fed officials that inflation pressures are being balanced. Because last week’s labor force data, while falling below expectations, once again emphasized the need for an interest rate cut.
On the other hand, in addition to investors pricing in the interest rate cut process, the extent to which the transition to fiscal expansion will occur is being discussed. Therefore, the issue on the agenda is whether the Fed will start the interest rate cut next week with 25 basis points or 50 basis points. In the new situation, while the estimates remain at 50%, there is an indecision in the market regarding the interest rate cut. The needle is expected to find a side according to the US CPI data to be announced on Wednesday.
